Alkermes Plc (ALKS)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	891,670	984,446	860,255	796,512	756,643
Payables	US$ in thousands	45,630	65,649	32,843	55,721	46,034
Payables turnover		19.54	15.00	26.19	14.29	16.44

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $891,670K ÷ $45,630K
= 19.54

Based on the provided data, Alkermes Plc's payables turnover has fluctuated over the past five years. The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the cost of goods sold to average accounts payable for a period.

In 2020, the payables turnover was 16.44, indicating that Alkermes Plc paid off its suppliers approximately 16.44 times during that year. The ratio decreased to 14.29 in 2021, suggesting a slight decrease in the efficiency of managing its payables.

However, there was a significant improvement in 2022, with the payables turnover ratio jumping to 26.19, showing that the company paid its suppliers more frequently compared to the cost of goods sold. This high ratio could signal efficient management of supplier payments and potentially favorable credit terms.

In 2023, the payables turnover decreased to 15.00, indicating a slight decline in efficiency compared to the previous year. The ratio then increased again to 19.54 in 2024, suggesting that Alkermes Plc improved its payables management once more, although not reaching the high level seen in 2022.

Overall, the fluctuations in Alkermes Plc's payables turnover ratios over the years may indicate changes in the company's relationship with its suppliers, its payment terms, or its overall financial health. Further analysis and comparison to industry benchmarks would provide more insights into the company's payables management efficiency.